topic 1098 Error after Refinance in Deductions & credits

1098 Error after Refinance

pmattia08 — Sat, 12 Feb 2022 18:00:46 GMT

Hello, TurboTax Community!

I have gotten myself into a pickle of sorts. I filed my taxes on February 4 or 5, 2021. A few days later, I received another @1098 form that is associated with my refinancing deal last year.

I went back into TurboTax to account for the new 1098, but I got and continue to get an error message from the Desktop software, even though I have entered all the information into the exactly as it is on my 1098. There is only an amount in Box 1, a date in Box 3, and Box 7 is checked. No other amounts are printed. The @Error message states "Amount borrowed this year must be entered," which I would guess is referring to Box 2, but there is no information in Box 2 on my 1098.

My 2 questions are:

1) How should I move forward with this 1098? Before I entered any of this information, my return was accepted and had no errors, and it is a relatively small amount. Should I contact the company from which I received it to see if they made a mistake, or just ignore it and proceed as if I didn't receive it?

2) I had my state return already printed (to avoid the $20 state e-file fee) and ready to mail, but since I received the new 1098, I decided to wait to mail them in so that I could go ahead and correct the errors and then mail the correct tax return for my state. Should I resolve the issue with my 1098 before I mail in my state return, or should I go ahead and mail it now and then file an @Amendment to my state return, like I am doing with my federal return?

Thank you for your advice!

Re: 1098 Error after Refinance

RaifH — Sat, 12 Feb 2022 20:47:19 GMT

On your filed return, did you claim the standard deduction or did you itemize? If you took the standard deduction and this 1098 was for a relatively small amount, you might not have to do anything.

However, if you did itemize or if this impacts your state return, you will want to amend your return. There should be an amount in Box 2. If it is blank and your mortgage company is not going to issue a corrected Form, you will need to get the outstanding principal on the date the mortgage originated and use this as your Box 2 amount.

If you do need to amend the federal return, I would file the original state return and amend that one as well if it impacts your state return. I also would hold off on filing your amended returns until your original return is processed and you have received your refund if you are getting one. Don't worry, you have up to 3 years to amend a return from its original due date so there's no hurry.

Re: 1098 Error after Refinance

pmattia08 — Sat, 12 Feb 2022 23:44:07 GMT

I itemized, because TT told me I would get the biggest refund that way. I went ahead and reached out to the company to see if they made an error, but it is good to know that there's no rush.